Struggling video-game retailer Game Group’s shares have been suspended from trading as the company is unable to assess its financial position.
In a statement, the retailer said that after assessing the status of its discussions with its lending banks, it now believes it’s unable to assess its financial position and that it has no equity value left.
As a result, its shares have been suspended from trading on the main market of the London Stock Exchange, which went into effect at 7:30am today.
Game Group, which owns 1,300 GAME and Gamestation stores, has been struggling recently and expects a stg£18m loss in the year to 31 January. It also faced difficulty stocking new games from certain publishers, including Mass Effect 3, which became the UK’s highest-selling game of the year so far, selling more than both of its prequels combined in their opening weekends.
Its shares plunged below 1p on 12 March and it said that while it was still having ongoing discussions to gain alternative sources of funding, it was “uncertain” if any of these solutions would be successful or would add value to the company’s shares.